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Marc Faber 29 OCT 08 "Chairmen Bernacke has been a disaster"

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October 30, 2008 – Comments (10) | RELATED TICKERS: SKF

I am still holding #1 in points. But we are in Black Swan territory, social uphevals are pending all this stupidity by the corrupt cartel the FED.

But Marc Faber is calling for a 3-6 month rally.  

Marc Faber, one of the best sources of information out there. Nothing to add except, if you have not read his book Tomorrow's Gold, you should read it.

10 Comments – Post Your Own

#1) On October 30, 2008 at 12:28 AM, abitare (58.10) wrote:

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#2) On October 30, 2008 at 1:16 AM, awallejr (82.72) wrote:

You forgot to find a video on the sexist Peter Schiff ("women don't want to work"). 

My problem with Faber, as with Schiff, is he thinks the free market needs to play out.  This is the same crap that CAUSED this mess to begin with.  It "ain't no cure." It is as simple as that. Unregulated greed run amok caused this problem and it is going to take hard work to get out of.  I am still waiting on criminal indictments (the CEO of WB should be one for his last appearance on Mad Money).

 

As for Roubini, despite his gloomy demeanor he is actually pretty opportunistic for a bear.  He is calling for a "deep recession" for 2 years, yet he starts it from beginning of this year.  That takes us to 2010, which is the year even I said we need to get to. He isn't calling for a depression as many "gloomers" are trying to predict.  AND, according to him we are almost halfway out of it.  Since the market looks 6-9 months down the road, according to Roubini then we should be near or at the bottom.

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#3) On October 30, 2008 at 8:20 AM, abitare (58.10) wrote:

awallejr,

You must be a "good" attorney, becasue you did not accurately record what happened and what was said, but you are able to regurgitate everything in the way you wanted it to be.

As they say, "any attorney can convict an innocent man with suffient evidence, but it takes a good attorney to convict an innocent man with little or no evidence" 

REPEAT AFTER ME TO AVOID CONFUSION:

"The primary cause of this debacle is the corrupt private cartel the FED and the support of the US government"

None of this debacle would have happened without the FED and the monopolies given to the Fannie, Freddie, the ratings agencies: Moodys, Fitch and S&P etc.... Plus the unlimited fiat money the FED prints out of thin air.

To think this is going to end in two years, is to miss understand the size and scope of the problem. A bubble once popped will not reinflate.

Ref: Greenspan's Bubbles by Bill Fleckinstein. 

Watch this five times: 

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#4) On October 30, 2008 at 8:25 AM, abitare (58.10) wrote:

Lets watch this again, it is like porn for those that like economics, 252,533 views:

 

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#5) On October 30, 2008 at 8:27 AM, abitare (58.10) wrote:

Now say again everybody: "Coins" one more time "coins"

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#6) On October 30, 2008 at 9:22 AM, awallejr (82.72) wrote:

Repeat after me, unregulated greed caused this mess. Repeat it over and over.

SEC raises deleverage rates, Congress amends laws to allow brokerage houses and others to lend in mortgages. Yes I will fault Greenspan too for keeping fed fund rate at 1% too low too long which made it easier for the greedmongerers.  But as a result of the preceeding you saw the real estate market run amok.

We really did have a healthy real estate market up to around 1999.  People were buying things within their means, banks were requiring PMI (private mortgage insurance) for those putting less than 20% down, prices were SLOWLY increasing over the years.  After the changes, the market exploded.  Banks had to now compete with the brokerage and funding companies' new packages, there was no verification process of any meaning, brokers were just churning out the fees without concern about risks, these products were bundled off to investors and given indiscriminate ratings. As with any ponzi scheme it eventually collapses.

THAT is why we are at this mess. UNREGULATED GREED.  And if you think I will ever again trust the private sector to cure itself and police itself you are crazy.  And you would be a fool to think it could.  This is the point Mr. "women don't want to work " Schiff misses and even Faber.  Under their scenario yes eventually things will transform in response to the current situation, but that transformation will only benefit the rich with the rest of the populace suffereing further.  No thank you.  While I am not hurting for money I am also not a greedy person since I acknowledge the transient nature of it all. But these guys can go pander their "let the free market cure itself" crap to the moon. 

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#7) On October 30, 2008 at 10:27 AM, kdakota630 (29.81) wrote:

Wow!  Marc Faber and I said the exact same things yesterday.  I was talking to a friend of mine last night and shocked him when I said we'd see a 20% rally over the next 3-6 months or so.

I guess we'll just have to wait to see how it plays out.

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#8) On October 30, 2008 at 10:47 AM, abitare (58.10) wrote:

awallejr,

Lol, do you real think the US is unregulated? SEC, Treasury, CFTC, Sarbaines Oxley, 10000 pages of accounting rules, OSHA, EPA, etc....

Or do you think lowing rates to 1% aka free money and having Fannie and Freddie buy everything, having the corrupt irresponsible FED bailout LTCM, Mexico, and now the FED is transferring billions of dollars to the nations biggest banks. 

The problem starts with the FED, the NASDAQ bubble, the real estate bubble etc....

The FED should be abolished and their private corrupt monopoly should be ended.

Who does Greenspan "the bubble maker" work for now?

The people he enriched.

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#9) On October 30, 2008 at 11:10 AM, abitare (58.10) wrote:

FYI

Steve Forbes calls for massive downsizing of Federal Reserve forbes.com excerpt: "The Fed is politically unaccountable. Yes, its chairman makes periodic appearances before Congress, but the Fed is not dependent on congressional appropriations. It literally prints its own budget. It pays for its operations out of the interest it receives on all the securities it holds and then remits the rest to Uncle Sam."

 

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#10) On October 30, 2008 at 1:57 PM, awallejr (82.72) wrote:

Ares it was the DEREGULATING that caused this.  I am telling you this as a professional.  I am telling you EXACTLY what happened.  I could tell you plenty stories. The banking commission didn't care, the SEC amended the regulations to make things LESS controlled and they didn't care.  The FED did play into it with keeping the interest rates low but that had NOTHING to do with what these brokers were doing and getting away with.  It was literally greed run amok. 

The brokers (brokerage houses and mortgage brokers) were churning these deals out as fast as they could with literally ZERO verification.  As long as the prices of the homes kept going up everything was hunky dorey.  But it simply got to a point where people's REAL wage income could no longer support the price run up.  Hence the ultimate collapse of a house of cards.  And since all these mortgages were bundled all over and leveraged 40-60 times you are now facing a major financial crisis.

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